Closed in NY Tuesday at $1.2820 after rate had been pressed to eventual intraday lows of $1.2808 before recovering to $1.2827 ahead of the close. Early Asia took rate back to retest that $1.2827 level before turning lower again, the dollar enjoying another round of general demand (apart from vs the Australian dollar which bucked the trend on the back of strong domestic trade data and strong China non-mfg PMI) as markets traded with a slight risk off tone, tracking ex-Japan equity markets. Rate squeezed below Tuesday’s low, breaking under $1.2800 to post overnight lows at $1.2795, before slowly climbing back through the Asian afternoon to the $1.2810 area into Europe. Corporate demand again reported below $1.2800 and seen providing some cushioning, though rate retains an underlying heavy tone as markets keep focus on Thursday’s ECB rate decision/Draghi press conference, with Friday’s key NFP lurking in the background. EZ CPI due at 0900GMT in an otherwise data light Europe calendar with attention set on US ADP data at 1215GMT and US non-mfg ISM at 1400GMT. Corporate demand from $1.2795 through to stronger area of $1.2755/50. Resistance into $1.2830, then $1.2845/55 ahead of strong interest above $1.2880.
EasyForexNews Research Team